Long Term Capital Gain

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Ajay Gupta (Querist)
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11 February 2011 I bought a commercial shop in Jul.2001 @ Rs. 60,000/-. Now I sold this shop in Feb. 2011 @ Rs. 8,10,000/-.

If I calculates my LTCG tax with indexation it will be around Rs. 1,46,230/-
20% of (Rs. 8,10,000 – (60,000 x 711 / 426)) + Edu. Cess.
And
if I calculates my LTCG tax without indexation it will be around Rs. 77,250/-
10% of (Rs. 8,10,000 – 60,000)) + Edu. Cess.

Can I pay the IT by the without indexation
Or
LTCG tax with indexation is compulsory.

What is the last date to pay tax
&
if i want to buy a property Around Dec. 2011, will i have to pay the tax and lateron it will be refunded.

Please help me to solve this problem.

With lot of thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 February 2011 LTCG tax with indexation is compulsory in your case.
Option of 10% is available only on listed securities or unit or zero coupon bond.
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Your advance tax installments falls due on
15/03/2011. By this date pay 100% tax payable.
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If you invest in property, please note that it should be a residential house.
In such case you need not to pay advance tax.
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The conditions of Section 54F are required to be fulfilled by you for getting exemption from LTCG.
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You have to open a Capital Gains Account with a Bank in which the amount of Rs 810000/- has to be deposited by you before 31.7.2011.

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Ajay Gupta

Ajay Gupta (Querist)
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13 February 2011 One more query regarding the same

In which bank i can open the Capital Gains Account and what are the procedures to do that and ROI etc.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 February 2011
You may ask bankers about the Capital Gains Account . The account can be opened with any branch of nationalised banks, like the State Bank of India, Oriental Bank of Commerce, UCO Bank, UBI, Punjab National Bank, Vijaya Bank, Union Bank of India
Indian Bank etc.

A savings account is opened in the bank and withdrawals are permitted from this type of a/c. You may also Fixed Deposit A/c from where you can transfer the amount to the Savings A/c and utilise for the purpose of acquiring new asset.

Your ROI can be filed upto 31.07.2011. The amount deposited in the Capital Gains Account is shown in the Return as if you have purchased a new asset and as such deduction can be claimed U/s 54F.

Contact a CA , for filing the return.

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